Manila: Net inflows of foreign direct investments (FDI) increased by 7.1 percent in April this year, as reported by the Bangko Sentral ng Pilipinas (BSP). Preliminary data indicated that the net inflows during the month amounted to USD610 million, compared to USD570 million in the same month last year.
According to Philippines News Agency, the rise in FDIs was driven by higher net inflows from nonresidents' net investments in debt instruments, which increased by 24.3 percent, from USD420 million to USD522 million. Reinvestment of earnings also showed a modest increase of 3.3 percent, climbing from USD82 million to USD84 million.
FDIs encompass investments made by a non-resident direct investor in a resident enterprise with at least a 10 percent equity capital in the latter, as well as investments by a non-resident subsidiary or associate in its resident direct investor. These investments can take the form of equity capital, reinvestment of earnings, and borrowings.
Despite the overall positive trend, nonresidents' net investments in equity capital, excluding reinvestment of earnings, witnessed a significant decline of 94.1 percent, dropping to USD4 million. The BSP highlighted that equity capital placements predominantly originated from Japan, the United States, Singapore, South Korea, and Taiwan. These investments were primarily directed toward the manufacturing, financial and insurance, and real estate sectors.
